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Concerns with Agricultural Income

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December 11, 2017

What is the issue?

  • Union government has set a target of doubling the farmers’ income by 2022.
  • This goal can be achieved only with structural reforms in the agricultural sector.

What is the status of farmer’s income in India?

  • Consortium of Indian Farmers Association, point out the median agricultural income as Rs.1,600/month.
  • The National Sample Survey Organisation (NSSO) data for 2012-13 had revealed that nearly two out of three farm families were unable to earn enough to meet the household expenses.
  • Nearly 80% farmers are not covered under the minimum support prices mechanism.
  • Recent discussion paper of the NITI Aayog has revealed that about 2/3rd of rural income now come from non-agricultural sources.

What are the concerns with government’s target?

  • Union government has implemented seven-point action plan to boost farm incomes.
  • It does not lay adequate emphasis on much-needed reforms in areas like input pricing, marketing output, managing land (ownership and leasing), and importing and exporting farm goods.
  • Any sort of income cannot be guaranteed through a law, especially in the case of volatile occupation like agriculture.
  • Even insurance, a time-tested tool to hedge risks, has not been wholly effective in farming.
  • Income generation is an economic issue that requires market-based solutions and it needs to be viewed in the perspective of economic distress in rural areas.

What measures can address the agricultural income woes?

  • National Commission on Farmers, recommended that agricultural growth should be measured in terms of rise in farm income rather than increase in production.
  • The objective of this recommendation was to keep farm income in constant focus so as to help evolve income-centric policies, this needs to be implemented.
  • Scrapping Essential Commodities Act, will allows the government to put curbs on the movement and stockholding of farm products and frequently change the import and export duties.
  • Linking domestic prices with Customs tariffs will ensure so imports not becoming cheaper than the local produce.
  • Encouraging integrated farming involving agriculture’s allied activities, such as horticulture, floriculture, beekeeping, poultry, piggery, fisheries, and similar others will address the concerns.
  • Agro-based industry needs to be setup in and around rural areas to provide more opportunities for employment and income for cash-starved farmers.

 

Source: Business Standard

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